By Laurie Forbes

PS Business Parks Inc. (NYSE:PSB) purchased RREEF America LLC’s 5.34 million-square-foot industrial and flex portfolio in Northern California for $520 million or $97 per square foot.

In connection with the deal, the buyer assumed a $250 million secured loan that matures in five years and entered into a three-year unsecured term loan for $250 million with Wells Fargo Bank.

The 18 business parks are 82.2 percent leased to 216 tenants in the San Francisco Bay Area. They consist of:

Concord
Concord Business Park: seven flex and three industrial buildings totaling 246,000 square feet;

Fremont 
Bayview Business Park: two industrial buildings totaling 104,000 square feet;
Christy Business Park: three industrial buildings and one warehouse totaling 334,000 square feet;
Industrial Drive Distribution Center: one warehouse with 199,000 square feet;

Hayward 
Bay Center Business Park: 12 flex, industrial and warehouse buildings totaling 464,000 square feet;
Cabot Distribution Center: one warehouse containing 249,000 square feet;
Diablo Business Park: one flex and 11 industrial buildings totaling 271,000 square feet;
Eden Landing: one industrial building with approximately 83,000 square feet;
Hayward Business Park: six industrials and three warehouses totaling 1.1 million square feet;
Huntwood Business Park: two flexes and one industrial totaling 176,000 square feet;

Milpitas
Dixon Landing Business Park: seven industrial buildings and one warehouse with 505,000 square feet;

Oakland
Port of Oakland: two industrial buildings and one warehouse with 200,000 square feet;

Santa Clara
Walsh at Lafayette: three warehouses and one flex with 320,000 square feet;

San Jose
Little Orchard Distribution Center: one warehouse containing 213,000 square feet;
Charcot Business Park: four industrial buildings totaling 164,000 square feet;
Montague Industrial Park: four industrials and two warehouses totaling 315,000 square feet;

San Leandro
Doolittle Business Park:four industrials with 113,000 square feet; and,

Sunnyvale
Kifer Industrial Park: four warehouses with 287,000 square feet.

Read entire CoStar article here.

PS Business Parks, a division of Public Storage, Inc. has been busy lately and it comes as no surprise that they would pull the trigger on this portfolio.  The bigger question is what’s happening with RREEF, which seems to be liquidating a lot of properties.  Consolidation or cash strapped?